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China-based smartphone vendors Xiaomi Technology and LeEco reportedly have reduced their orders for parts and components recently as their smartphone sales have been affected by recent price hikes, according to sources from Taiwan’s handset supply chain.
Xiaomi has seen online sales of its smartphones decline 10% recently after it raised prices of its Redmi 4 series products, including the Redmi 4 and Redmi 4A, by CNY100 (US$14.50) on average, citing rising prices for parts and components, said the sources.
LeEco also raised the price of its Pro 3 4GB model to CNY1,899 from the previous CNY1,799, and the Pro 3 6GB to CNY2,099 from CNY1,999.
The price hikes came even after the two vendors saw their smartphone shipments decline 42.4% and 39.5%, respectively, on quarter in the fourth quarter of 2016, pointed out Digitimes Research.
Smartphone shipments in the China market are expected to see a decline of 19.3% on quarter and 2% on year to below 100 million units in the first quarter of 2017, Digitimes Research has estimated.
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